Answering the compensation questions
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Answering the Compensation Questions. Presented by: Loretta P. Dodgen, Ed. D . August 27 - 28, 2012. Strategic Question. Compensation has consistently remained one of the top five job-satisfaction factors considered most important to employees.

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Answering the compensation questions

Answering the Compensation Questions

Presented by:

Loretta P. Dodgen, Ed. D.

August 27 - 28, 2012


Strategic question

Strategic Question

  • Compensation has consistently remained one of the top five job-satisfaction factors considered most important to employees.

  • Pressure for financial performance drives need to maximize the impact of human capital and align human resource processes with the overall business strategy.

  • Human Capital practices are a lead indicator of good financial performance (Towers Perrin).


Strategic question1

Strategic Question

  • 60 Percent of CEOs to Retire in Next 10 Years- JMFA & Associates, Inc. Execs (2007)

  • The CUNA 2011-2012 CEO Total Compensation Survey suggests 21 percent of credit union CEOs will retire over next 5 years.

  • Only 63 percent of credit unions have a formal succession plan in place. (CUNA)


The questions

The Questions

  • How can we reward our employees in ways that encourage high performance and ensure retention, yet hold steady on operational and payroll costs?

  • What is the right figure- fair and reasonable?

  • Does our compensation program support our credit union’s strategic goals?

  • Are we accomplishing what we set out to achieve?


High performer sample

High Performer Sample

  • 32 credit unions

  • Asset sizes from $222.9 M to $46.9 B

  • Members from 26,400 to 3.9M

  • All geographic regions

  • Multiple sources and factors: financial performance, services and products, growth ratios

    • www.findthebest.com

    • NCUA

    • Raddon Group

    • Filene Institute


High performer trends

High Performer Trends


Does our compensation program support our credit union s strategic goals

Does our compensation program support our credit union’s strategic goals?

  • The Strategic alignment with vision, goals, core values

  • Human Capital included in development of strategic goals

  • Consistent and transparent feedback and all employee celebration of progress toward goals


Answering the compensation questions

How can we reward our employees in ways that encourage high performance and ensure retention, yet hold steady on operational and payroll costs?

  • Support risk, empower, and engage

  • Accountability to the team

  • Training and employee development to grow talent and bench strength

    • Average cost of finding and hiring someone from outside is 1.7 times more than an internal hire

    • While external hires were paid 18% more, research shows that 40% to 60% of external hires are not successful compared to 25% of internal hires. (Wharton School)


What is the right figure fair and reasonable

What is the right figure- fair and reasonable?

  • Alignment with compensation strategy

  • Competitive, defined market position

  • Support of internal equity

  • Consistent use of data

  • Clear linkage between achievement and rewards and recognition


Are we accomplishing what we set out to achieve

Are we accomplishing what we set out to achieve?

  • Target and track human capital metrics

  • Relevant benchmarks

    • Peers

    • High performers


Answering the compensation questions

Q & A

For additional Information Contact:

Loretta P. Dodgen, Ed. D. [email protected]

www.hcsgroupusa.com

2815 Coliseum Centre Drive

Suite 220

Charlotte, NC 28217

704-716-3451


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